As the use of rare earths continues to increase, the question arises: How long will the deposits of these mineral resources, which are important for a future-oriented economy, last without suitable recycling strategies?

• Impact on various sectors
• Dependence on China
• Recycling of rare earths

Rare earths are raw materials whose extraction and processing involve lengthy processes. However, they represent one of the most important mineral resources for modern civilization, electrical as well Defense industry Rare earths are used in almost every area of ​​life, be it to improve batteries, screens, in the energy sector – in the form of parts of wind turbines – or in the medical technology sector.

Dependence on China

There is a great dependency on China in particular, as the country mainly controls the global supply of these raw materials, according to an article by DIE ZEIT. That’s why many countries want to break away from China. The EU and South Africa signed an agreement in November 2025 that is intended to bring the countries one step closer to independence from China’s raw materials. EU Commission President Ursula von der Leyen said about the agreement in her press statement in Johannesburg that these raw materials are needed to advance the energy transition in Europe and South Africa.

Recycling of rare earths

Rare earths are an essential component for the production of various technologies for different industries. However, according to a report on br.de, their extraction and disposal have a major impact on the environment. The recycling of rare earths is not yet an established practice. According to all-electronics.de, measures that could be taken include, for example, establishing legally required systems that guarantee the return of these raw materials, setting fixed quotas to ensure that a certain amount of the rare earths used is recycled or the introduction of technical processes that ensure a more effective separation of rare earths from the respective products.

That’s why the EU passed the European Critical Raw Materials Act. The law stipulates that by 2030, around 10 percent of the raw materials required should be mined within the EU, 40 percent of the raw materials required should be processed within the EU and 25 percent of the EU’s raw material needs should be obtained from recycling processes.

Editorial team finanzen.net

Selected leverage products on HENSOLDT

With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on HENSOLDT

Advertising

ttn-28